Blackstone To Acquire TXNM Energy For $11.5 Billion

In a historic deal highlighting the increasing significance of clean energy investments, one of the world's most prominent alternative asset managers, Blackstone, has announced a deal through Blackstone Infrastructure to take control of TXNM Energy, an electric utility holding company. The deal is worth an enterprise value of $11.5 billion and represents a major step toward the development of energy infrastructure and furthering clean energy objectives in the American Southwest.

TXNM Energy supplies more than 800,000 residences and businesses in Texas and New Mexico via its regulated utilities: Texas-New Mexico Power Company (TNMP) and Public Service Company of New Mexico (PNM). Through this acquisition, Blackstone intends to provide long-term capital to enable the continued clean energy transition, enhance the reliability of energy supply, and underpin fast regional development. The deal is anticipated to be closed in the latter half of 2026, pending shareholder and regulatory approvals, and has already been unanimously supported by TXNM Energy's Board of Directors.

The investment comes at a critical juncture for TXNM Energy. PNM, the utility's New Mexico division, is in the process of transforming its generation portfolio to fit within the state's aggressive clean energy goals. These involve a transition to carbon-free fuels and the creation of affordable solutions to customers who are going through the energy transition. TNMP in Texas, on the other hand, is addressing some of the fastest-expanding energy needs in the country, fueled by economic growth and population growth. The two utilities have both been investing heavily in infrastructure to improve grid reliability and provide for future capacity.

Pat Collawn, TXNM Energy Chair and CEO, was positive about the new partnership and the company's future direction. "We've added new resources to provide more than two-thirds of PNM's electricity requirement with carbon-free power and enabled double-digit demand growth at TNMP. We are looking forward to establishing this long-term partnership with Blackstone Infrastructure to leverage these successes," Collawn said. She also reiterated the company's focus on collaboration with customers, communities, policymakers, and regulators to provide a strong and dependable grid that facilitates economic growth and the shift towards cleaner energy.

The transaction is not only the acquisition of TXNM Energy. Under the terms of the agreement, Blackstone is also contributing $400 million in equity to buy 8 million newly issued shares of common stock of TXNM Energy. This capital contribution is intended to finance the firm's long-term growth strategies, including energy infrastructure and integrating renewable energy. The investment will bolster the utility company's balance sheet and offer the financial flexibility necessary to address future requirements and clean energy obligations.

Blackstone Infrastructure, known for its strategy of using perpetual capital to make long-term investments in critical infrastructure, is positioning itself as a collaborative and responsible stakeholder in the energy sector. Sean Klimczak, Global Head of Blackstone Infrastructure, highlighted the firm’s philosophy and approach: “We are long-term investors who back industry-leading companies using our perpetual capital to support economic development. We are committed to being excellent long-term partners to the communities where we invest, and we hope to have the chance to enter into positive discussions about how we can make win-win, growth-focused investments throughout both states.

Most importantly, the daily business and regulatory environment of TXNM Energy's subsidiaries will not be altered. PNM and TNMP will continue to be governed by the relevant state and federal commissions and maintain local management and operations, with headquarters remaining in New Mexico and Texas. This is aimed at maintaining the strong local ties and community confidence that TXNM Energy has established over the years.

The deal indicates an increasing trend in the utility industry, with private capital being invested to upgrade aging infrastructure, incorporate renewable sources, and strengthen the grid. As policy changes, technological innovation, and customer preferences drive the transition to energy, partnerships such as Blackstone and TXNM Energy are likely to drive the future of the United States' energy sector.

As negotiations move closer to completion, Texas and New Mexico stakeholders will continue to follow with interest. The prospect of increased infrastructure investment, new jobs, and a cleaner energy mix presents substantial benefits for both states. If completed successfully, the Blackstone-TXNM collaboration may provide a model for how private capital can facilitate public good in the next-generation energy economy.